A few days ago, Xbox Game Pass subscribers learned some unpleasant news. Microsoft suddenly increased the price of its service, even going so far as to temporarily make one of its plans unavailable, in order to change its benefits and market it under another name to avoid any complaints. However, this did not escape the vigilance of the Federal Trade Commission.
The institution took this matter in hand since it was already the one responsible for validating the acquisition of Activision Blizzard. When Microsoft announced the move, investigators immediately called on the studio to reconsider its decision, saying that the new Xbox Game Pass Standard plan was a “degraded version” of the console plan it was supposed to replace. This is because players on that platform no longer have access to Day One games, unlike all others on PC or with an Ultimate subscription.
Microsoft is now responding to these accusations firmly, denying any degradation of its service. In a letter to To their FTC interlocutor, company representatives explain that in exchange for removing Day One games from its catalog, the firm is giving its subscribers the ability to play online, as well as incremental additions of unparalleled quality. Microsoft obviously waited until Call of Duty Modern Warfare 3 was released in the catalog to write this letter and use it as an example.
A buyout, an increase: coincidence?
If the FTC is so worried, it is because the increase in Game Pass has everything to do with the buyout of Activision Blizzard. Indeed, a few months ago, Microsoft stated that no price increase was planned in connection with this acquisition, following an inevitable increase in quality thanks to the studio's prestigious franchises (Warcraft, Overwatch, Crash Bandicoot, Diablo, Candy Crush, etc.). However, it is difficult not to make the connection between the two events today, a few months before the availability of Call of Duty Black Ops 6 on the day of its release, and only a few days after having made the news official. Microsoft defends itself:
“The FTC barely mentioned subscription at trial, focusing instead on the theory that Microsoft is withholding Call of Duty from Sony's console.[…] And there is no evidence of harm to competition: Sony's subscription service continues to thrive, even though it adds few new games to its subscription on a daily basis, unlike Microsoft. The deal therefore continues to benefit competitors and consumers – exactly what the district court correctly found.”
The FTC obviously hasn't had time to respond to Microsoft yet, but an investigation could well be reopened. No longer for anti-competitive practices, but rather for consumer protection concerns (read all about the new Game Pass prices here).
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